Get the most out of your dependent medical expenses…… money back!
The devil is in the details. Well, in this instance the devil is tracking out of pocket medical expenses. Once out of pocket expenditures exceed 10% of adjusted gross income you’ve got deductions! Do you have a running account of all the money you’ve been spending on you and your dependents? This is an exercise in accounting well worth completing. Below is a high level list of what’s deductible but you’ll want to check the IRS’s Publication 502 for greater detail.
- Copays & deductibles
- Accepted therapies that may not be covered by your insurer
- Ambulance charges
- Physical therapy
- Memory care
- Bandages / care supplies
- Hearing aids
- Activities for older people (dual eligibles)
- Some required home and vehicle modifications for safety
- Professional health assistance for respite care
- Transportation for medical appts or services
- Adult day care or in-home health assistance (if you are working)
How to capture this information? It can be as simple as putting pen to paper with an envelope of receipts attached or a digital spreadsheet. The most important part is to have all your receipts & detail of the charge accounted for at the end of the year. Receipts must include the following:
- Patient Name
- Date of Service
- Diagnosis / Reason for Service
- Amount Paid Out of Pocket
- This is important – make sure it notes that the account has been paid or you have cancelled check or credit card receipt to back the expenditure up.